Categories
Engineer media

29% of USA ISP traffic is Netflix

Interesting talk from Nina Bargisen of Netflix. What surprised me was the chart she showed of the main traffic drivers on ISP networks in the USA. Netflix comes out top, representing 29% of all traffic carried by ISPs in the US. YouTube is only 15% of traffic with http coming third at 11%.

The thing to consider here is that as people move to higher quality video -3D,  Super HD, Ultra HD (4k) and ultimately 8k format the percentage of traffic that is video is clearly going to grow. Also clear is that this move to higher bandwidth video is going to seriously drive bandwidth requirements – both in operator networks and at the home broadband level.

Netflix recommend that you need 12Mbps bandwidth to carry 3D and between 5 and 7 (optimally) for Super HD. In the UK you would therefore be able to stream one 3D video or two Super HD, assuming an average download bandwidth of 14Mbps. 4k video will need 15Mbps per stream.

If for the sake of argument we assume that Netflix and YouTube represent all the video traffic in the USA then as 4k comes on stream and the bandwidth required to support it therefore doubles then video could well end up at almost 90% of all internet traffic. I realise that other applications will also grow their bandwidth needs but I don’t think I’m a million miles off the mark.

It’s coming folks. Better get your broadband speeded up. Pic below is of the chart shown by Nina at the conference.

PS no idea why people watch TV – the only good stuff on is Time Team and Storage Hunters and I’ve already seen Mary Poppins quite a few times.

USA ISP traffic statschart courtesy of Netflix and Sandvine

 

Categories
broadband Business UC

USA market for VoIP 3 years ahead of the UK #8×8

Availability of high speed broadband has driven the market for hosted VoIP telephony in the USA which is 3 years ahead of the UK.

Had dinner last week with Huw Rees, VP Business Development of 8×8. If you don’t know them, 8×8 are the largest provider of Over The Top VoIP services in the USA with over half a million subscribers. That’s almost as big as the whole UK market.

What’s more 8×8 are putting on subscribers at a terrific rate – over a thousand new businesses a quarter at approximately 18 seats per business. This is all public domain stuff. 8×8 is a publicly quoted company that turns over around $120m and with a Market Cap of $800m. Overall gross margin is 71% with GM on services up at 80% which is how they can achieve the market valuation.

This business performance is achieved in two ways. Firstly all 8×8’s technology was developed in house. They don’t have large licenses and royalties to fork out. In fact 8×8 owns a  lot of patents. Secondly everything is low touch, automated and web based including the marketing. They do have an inbound sales team because business customers like to talk to a real person before committing to this kind of technology.

The final interesting point to make is that 8×8 saw a trigger point that stimulated business growth and this was the availability of  high speed broadband – better quality and more reliable broadband connectivity. The USA went through this milestone around 3 or maybe four years ago. We are only now seeing it happen with the BT rollout of FTTC.

Since we started to sell FTTC at Timico we have seen it become a lot easier to sell VoIP seats. Reliability of the serviced is much better. VoIP even becomes a lever to sell people FTTC – they call in for one and we sell ’em both.

Our model as a one stop shop is different to that of 8×8 who pass on the connectivity and hosting revenues. The 8×8 success in the USA does bode well for the rest of us over in Blighty.

Categories
Archived Business

Land ho – overseas customers spotted

Timico engineers wave goodbye to Blighty as they depart from Liverpool DocksWhat do the following countries have in common?

France, Italy, Switzerland, Germany, Netherlands, Spain, Portugal, Poland, USA, Mexico, Hungary, Singapore, Hong Kong, Japan, Liverpool.

They are all places where we have customers. During our monthly Exec meeting yesterday a Singapore customer was discussed which made me think of totting up all the other places we have installations.

It’s quite a cool list and quite took me by surprise. We are a business with global reach. Most of them represent locations of overseas offices of UK based organisations that we supply services to – broadband, SIP, MPLS connectivity, phone systems, that kind of thing.

I slipped in Liverpool for a laugh. That’s not overseas. It’s on Merseyside – top left on the map for you Southerners. It’s where our engineers depart from when sailing to see these customers. Big port etc.

Strikes me it’s about time a certain CTO made a tour of duty to visit all these locations, just to make sure everything is ok 🙂

Inset photo is of a bunch of Timico engineers gazing wistfully back at the shoreline of Liverpool as they depart Blighty on a trip over the water.

Categories
End User fun stuff

Thanksgiving

Today is Thanksgiving day in North America. Not many of my American friends are online,  Jeff Keni Pulver being the odds on exception. I expect they are all being thankful for the day off and gearing themselves up for the supersized feast that is to come.

It occurred to me that this was a good time to ask around the Network Operations Centre to see what the engineers had to be thankful about. Of course I had to discount “having you as a boss Tref” comments, partly because none of them came my way. Hmm.

Ben, Head of Net Ops, said we should be thankful for the internet. Ok. Uhuh. The others were more imaginative.

Paul said he was thankful for Nunzilla! It’s definately a good one. Photo below.

Ian said he was thankful for his black characterless keyboard. I must say it is impressive. Thank you for that.

Anyone wishing comment on this post should do so, please. Imaginative things to be thankful for will be acknowledged and if worthy, may result in a prize.

PS note the product placement 🙂  !